Ole Red 29
Recycles dryer sheets
Guys, is it really necessary to put 3 to 5 years of expenses in a laddered CD or some similar "safe" option? Isn't the reason to have bonds is that they are less volatile? Is the trade off risking selling bonds when they are slightly down vs making a lesser fixed average income from a CD? If so, wouldn't that indicate that having stocks and bonds is enough? I guess the risk is how far down would the bonds go?
I understand the bucket system, but have been slow to adopt it. I have been retired for 1-1/2 years. With all the financial actions triggered when I retired, we have had plenty of cash to live from until now. Now I am looking to fund 2021. I understand many people put one year of expenses in a checking account (some do savings and auto transfer to checking monthly) and then another 3 to 5 years in laddered CD's or some other "safe" option. I am good with having 1 year's spending in a checking or savings. I may be too lazy to do the second bucket without prompting.
thanks,
I understand the bucket system, but have been slow to adopt it. I have been retired for 1-1/2 years. With all the financial actions triggered when I retired, we have had plenty of cash to live from until now. Now I am looking to fund 2021. I understand many people put one year of expenses in a checking account (some do savings and auto transfer to checking monthly) and then another 3 to 5 years in laddered CD's or some other "safe" option. I am good with having 1 year's spending in a checking or savings. I may be too lazy to do the second bucket without prompting.
thanks,
Last edited: